Growth of Hotel Industry spawning expansion

The Indian hospitality industry is on track to hit its highest Revenue Per Available Room (RevPAR) in a decade by FY2025, with even more impressive growth expected in FY2026. Occupancy rates are soaring to 72-74% by FY2026, with premium hotels' Average Room Rates (ARR) are set to climb to ₹8,000-8,400.

The Indian hotel market is experiencing significant growth potential, with projections indicating a substantial increase in revenue and user base in the coming years. The market is expected to reach US$ 59.44 billion by 2030, with a compound annual growth rate (CAGR) of 9.4% from 2024 to 2030. This growth is fueled by various factors, including a rise in domestic and international tourism, infrastructure development, and the adoption of advanced technologies by leading hotel companies.

Given this growth scenario, Brigade Hotel Ventures Limited (“Company”), shall open its Bid/Issue in relation to its initial public offer of Equity Shares (“Issue”) on Thursday, July 24, 2025. The Anchor Investor Bidding Date is one working day prior to Bid/Issue Opening Date, being Wednesday, July 23, 2025. The Bid/ Issue Closing Date is Monday, July 28, 2025.

The total Issue size comprises of a fresh issue of equity shares of face value of ₹10 each aggregating up to ₹ 7596.00 millions.

Price Band of the Issue is fixed at Rs. 85/- to Rs 90/- per equity share. (“The Price Band”).

Brigade Hotel Ventures Limited (BHVL) is an owner and developer of hotels in key cities in India primarily across South India. The Company is the second largest owner of chain-affiliated hotels and rooms in South India (comprising the states of Kerala, Andhra Pradesh, Tamil Nadu, Karnataka, Telangana, and the Union territories Lakshadweep, Andaman and Nicobar Islands and Pondicherry) among major private hotel asset owners (i.e., owning at least 500 rooms pan India) as of June 30, 2024. BHVL is a wholly-owned subsidiary of Brigade Enterprise Limited (BEL) which is one of the leading Indian real estate developers in India. The Company has a portfolio of nine operating hotels across Bengaluru (Karnataka), Chennai (Tamil Nadu), Kochi (Kerala), Mysuru (Karnataka) and the GIFT City (Gujarat) with 1,604 keys. The hotels are operated by global marquee hospitality companies such as Marriott, Accor and InterContinental Hotels Group, and fall into the upper upscale, upscale, upper-midscale, and midscale segments. The hotels provide a comprehensive customer experience including fine dining and specialty restaurants, venues for meetings, incentives, conferences, and exhibitions, lounges, swimming pools, outdoor spaces, spas, and gymnasiums. The hotels are typically located in positive demand locations, driven by factors such as high population density, premium neighbourhoods, commercial centres and IT hubs. The average occupancy (representing the total number of room nights sold divided by the total number of room nights available at a hotel or group of hotels) in Fiscal 2025 was 76.76%, which was higher than the industry annual occupancy in Fiscal 2025 of 64.5%.

According to a recent report by HVS Anarock (a global consulting firm focused exclusively on the hospitality industry), industry Average Room Rates (ARR) rose ~12% year-on-year, occupancy surged 500 basis points (5%) and RevPAR jumped 20% in April 2025.

According to a Statista Report, The Hotels market in India is expected to witness a rise in revenue with a projected value of US$11.35bn by 2025.

The market is expected to exhibit an impressive annual growth rate of 16.59% (CAGR 2025-2030), contributing to a market volume of US$24.46bn by 2030. Additionally, the number of users in the Hotels market is expected to reach 154.66m users by 2030, with a user penetration of 4.4% in 2025, which is expected to increase to 10.1% by 2030. The average revenue per user (ARPU) is expected to be US$174.91.

Moreover, it is projected that 61% of the total revenue in the Hotels market will come from online sales by 2030.

In comparison, United States is likely to generate the most revenue, with a projected value of US$120bn in 2025.

India's hotel market is experiencing a shift towards eco-friendly and sustainable practices to cater to the growing demand for responsible tourism.

Domestic and inbound tourism, along with a growing MICE segment, are the Indian hotel industry's biggest bets, as demand continues to outpace supply.

In its recent industry report, the firm projected that the country’s hospitality sector will grow 10.5% annually till March 2027. Three key factors are expected to drive this growth: domestic travelers, foreign arrivals, and MICE (meetings, incentives, conferences, and exhibitions) segment.